Leaked emails indicate that Blizzard is the top-performing studio for Xbox in fiscal year 2026

Internal communications verified by Windows Central reveal that Blizzard emerged as the leading contributor to Microsoft's Xbox Game Studios in the 2026 fiscal year.

Blizzard's president, Johanna Faries, informed employees of these accomplishments via email before the BlizzCon 2026 event, highlighting the key roles played by the releases Diablo 4: Lord of Hatred and Overwatch in promoting two consecutive years of studio growth.

Faries emphasized, "During FY26, Blizzard ranked as the highest-performing studio within Xbox's divisions, marking our third-best fiscal year for revenue in Blizzard's history."

The company also reported a notable resurgence for Overwatch, achieving its best quarter since 2022.

While specific studio revenue figures aren't part of Microsoft's public financial reports and haven't been officially confirmed by either Microsoft or Blizzard, this success reportedly contrasts sharply with broader trends within the Xbox division, which saw significant drops as reported by Gamesindustry.biz.

Blizzard is set to announce its upcoming projects during BlizzCon 2026, beginning on September 12 in Anaheim.

Since completing its acquisition by Microsoft in October 2023, post-approval by the UK’s Competition and Markets Authority, Blizzard has maintained a level of autonomy from the rest of Microsoft's gaming operations.